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If a Debt Tsunami Comes At You, Don't Drown

It wasn't until 1950 when credit cards came about. Before that, they saved money for the things they wanted. Today, that’s not the case. In our present time it is nearly impossible to not incur at least a little debt. The average person can't afford to pay all cash for a house or car. However, if you acquire too much debt, whether it is from something as buying a car or an emergency such as a medical one, you can find yourself drowning if you aren't prepared.

Americans in general don't save. In fact our whole society is based on debt. We are not encouraged to save or grow our money but we are encouraged to take on as much debt as we possibly can, stretching our budgets to very dangerous limits. Next thing you know, a debt tsunami hit you and you are left drowning with no life vest to see you through.

There are a few things you can do to protect yourself from the debt tsunami. Here are a few things to keep in mind:

* It is obvious, I know, but begin to save more. Even a hundred dollars a month is better than nothing. If you save just $100 a month that can add up to $1200 a year, even more if you invest it properly. Keep this trend for several years and you could find yourself with a decent nest egg.

* Do not use credit as much. For the most part if you do not have the cash to pay for something you simply cannot afford it, and you will end up drowning in debt trying to acquire it by using a credit card.

* Prior to spending money, take a minute and ask yourself if carrying that debt for months or maybe even years and paying sometimes 10 times more than the actual price of the product because of all the interest charges is really worth it. If you can hold back on the impulse shopping you can dramatically cut your debt.

Your financial future will depend upon the financial decisions you make today. Don't get caught in a debt tsunami, create a financial life vest that will see you through bad times such as having a rainy day fund, staying out of unnecessary debt, and controlling bad habits that get you into bad financial positions